PARMALI WALLACE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter called the 'Act' for short), the petitioner Company seeks, (i) declaration that the respondent Railways cannot withhold, adjust and /or recover the petitioner/claimant's dues in other contracts vide their letter No. AS/ S/O/Recovery dated 9th July, 1996, (ii) an injunction restraining respondent Railways not to effect recovery, and (iii) a mandatory injunction directing the respondent Railways to forthwith pay the amounts due to the petitioner /claimant in certain bills, of course, in other contracts.

(2.) According to the petitioner, two purchase orders dated 10th June, 1991 and 2nd July, 1991 were placed on petitioner. The first order was for the supply of 1030 Nos. FRP Glass Shutter Arrangement for BEML Coaches to Items 1 to 12 except item 8 of RDSO SK No. 85166 alt.(l) Mat. & Specn. as per drg. and part drg. mentioned thereon conforming to RDSO schedule of requirement No. C-8411 and C-8409 @ 259.00 each D.P. upto 15.3.92 against P.O. No. 07901931102422 dated 10.6.91. Second order was for supply of 18081 Nos.of FRP Glass Shutters Arrangement from Items 1 to 8 to 13 RDSO SK No. 85166 alt (a) Mat. & Specn. as per drg. /pt. drg. mentioned thereon to RDSO Schedule of Tech. Ref. C-8411 @ 247.00 at a total value of Rs. 53,76,179.00 with D.P. upto 305.92 against P.O. No. 07901812102934 dated 2.7.1991.

(3.) The petitioner failed to supply the material. On 9th July, 1996, letter of withholding the amount was issued on failure of the petitioner Company to pay the loss suffered by the Railways on account of non-supply of shutters under the risk purchase orders.